You may be overwhelmed and confuse with so many different type of debt management, debt settlement and debt consolidation that are available in the market.
There are not the same and it is very important to have an understanding of each one of them clearly so you can choose the option that is suitable for your current needs.
By choosing the right one, you can get your debts under control without the need for another loan
Debt management companies is a designated third party assisting a debtor with repayment of his or her debt.
The management counselor talk to you about your financial situation, look at your income, debts and help devise a payment strategy that will be used to make repayments to your creditors whilst allowing for all your day-to-day living expenses. Do read the debt management FAQs
Debt consolidation involves taking out a new loan to pay off all of your existing high interest credit card and unsecured debts. It will eliminate hassle of dealing with multiple creditors and turn all your debts into one manageable monthly payment.
By dealing with only one lender, you can save on higher interest rates or default charges as the the odd one missed payment is minimize.
The sooner you reduce your debt, the faster you will be in control of your financial life and see improvement in your credit score. By taking action sooner rather than later could make all the difference.